Real Estate Information Archive

I'm very excited to let everyone know Grand Rapids is Starting it's first annual restaurant week like several other major big cities. Restaurant week will take place November 4 - November 13. There are 50+ restaurants involved now. All I know is that the program is going to be 3 course meals for $20.10. for more details on participating restaurants,  to plan you food adventure go to www.restaurantweekgr.com .

According to the Associated Press,  mortgage rates dropped to the lowest level in decades for the sixth time in seven weeks, offering the most attractive opportunity for those who qualify to refinance or purchase a home.

Government-controlled mortgage buyer Freddie Mac said Thursday that the average rate for 30-year fixed loans this week was 4.49 percent, down from 4.54 percent last week. That's the lowest since Freddie Mac began tracking rates in 1971.

If you're in a position to buy and have been hesitating, now is the time. Mortgage rates will eventually go up and with inflation they could sky rocket. I cannot stress enough that NOW is the time to buy.

Dave Ramsey was asked "What are the advantages of using a real estate agent versus going the for-sale-by-owner route when it comes to selling a home?"

His response was this:

I've had a real estate license for 30 years. If I were to put my personal residence on the market today, I'd use an active real estate agent who really knows his or her stuff in the marketplace. I'd gladly pay them their commission, too.

Now, why would I do a for-sale-by-owner, or FSBO, I'm only getting my place in front of buyers I can attract from seeing a newspaper ad, Craigslist and anyone who happens to drive by the house. If you go with a high-octane real estate agent, you will have the advantage of being exposed to his or her entire pool of buyers.

More importantly, you will be in the MLS or Multiple Listing Service, database. There, you will immediately have thousands of potential buyers.

So, who do you think will have the best chance of selling your house? Market exposure is everything in the real estate game.

And think about this: Even if you went the FSBO route every time you moved, you might do three or four of these transactions in a lifetime. A good agent closed three or four deals last week. They will know all the ins and outs of buying and selling a home, and they'll walk you through every step of the process. Research has shown that, between basic mistakes, pricing errors and lack of negotiating skills, you will cost yourself more than the agent's commission by trying to sell it yourself.

Trust me, you will get a much better deal-with a lot less hassle- by using a top-flight real estate agent.

This is a repost from an Agent in Arizona: Joyce Thomas at US Preferred Realty www.DesertSunRealtors.com

Article : Buying a Builder Home Without Representation Can be a Nightmare

Buying a Builder Home Without Representation Can be a Nightmare.  This is a scary and unfortunately true story.  All names are being protected in this story.  Buyers need to take buying a home from a builder very seriously when they enter a builder's sales center and make sure they are fully represented by a Buyer's Agent (Realtor).

The main thing to keep in mind is that the "Realtors" working for the builder are actually "Salespeople".  They are trying to meet a quota for the week or month, to get their next plaque on the wall, or win the turkey for Thanksgiving.  It is quite unfortunate that Buying a Builder Home Without Representation Can be a Nightmare.

This story starts with a very nice couple in their early 50's (let's call them Bob and Bobbie Buyer) tagging along with their friends while they buy their new home.  Once the Salesperson (lets call her Susie Salesperson) working for the builder had sold the community and a new home to their friends, she turns to Bob & Bobbie Buyer and says, "So are you ready to buy a home?".  Bob & Bobbie Buyer, who had absolutely no intention of buying a home (new or resale) told Susie Salesperson "no".  But Susie (being a top Salesperson in 2006 and having won all kinds of awards for meeting sales quota) continued to use her newly learned sales pitches to pressure them by telling them, "Well let's have you get preapproved through our inhouse mortgage company just to see what you can afford.  After all wouldn't you like to live here with your friends in a beautiful new home in this fabulous community?" (Sell, sell, sell Susie Salesperson was doing.)

So you are probably thinking, "Sounds like the typical builder salesperson."  Thats what I thought too until they told me what the salesperson told them to do.  They didn't qualify for the new home through the inhouse lender, so Susie Salesperson told them that all they had to do was change their tax records so they would qualify (just for the loan of course).  I don't know about you, but I think that's ILLEGAL????  When Bob & Bobbie Buyer questioned her, she said, "Oh it's just for the purpose of your loan and then you just do an addendum to your taxes to correct them."  Buying a Builder Home Without Representation Can be a Nightmare especially when it is a salesperson such as this one!  But this "Salesperson" learned this from somewhere.....hmmmm…maybe the builder taught her to do this?  Scary!! 

The saddest thing about this story is that Bob & Bobbie truly could not afford this home and never should have been approved for a mortgage.  However, the excitement created by Susie Salesperson got them into a home that drained their assets and put them into Grand Rapids Foreclosures, ruining their credit.  They were happy renting a home and never had any intention of buying a home.  Unfortunately, they got caught up in the thrill of owning a home (after all they had never owned a home - ever!).  Now, they are renting a home again waiting on a buyer to put an offer on their home which is listed as a Grand Rapids Short Sales to try to avoid foreclosure because of this horrible experience of Buying a Builder Home Without Representation Can be a Nightmare.

Any buyers reading this, please beware that you must be represented by a Buyer's Agent (Your Realtor) when buying a home through a builder.  The builder's salesperson represents the Builder and is doing everything in their power to get the best deal for the seller (builder).  They work just like used care salespersons.  They receive a "draw" as income and when they make a sale they pay back their "draw".  If they go without making a sale, they could get fired or laid off and owe the builder money for the draws and lack of sales.  They are high pressure salespeople. When you buy a home directly through the builder without representation, you give up your right to be professionally and fully represented in the transaction and could end up in a very unfortunate situation like these poor buyers did. 

The best thing is that using a Buyer's Agent to help you buy a home costs you absolutely nothing.  The seller (builder) always pays the Buyer's Agent - you never pay anything! Buying a Builder Home Without Representation Can be a Nightmare!  Make sure you are fully and professionally represented by a Buyer's Agent (a Realtor) before stepping foot into a builder's sales office, even if you are just tagging along with a friend to look at model homes. 

A Buyer's Agent as the following fiduciary duties to you.  A Buyer's Agent must:

• Be loyal and act in your best interest
• Obey your lawful instructions
• Protect your confidence
• Exercise reasonable skill and diligence when answering your questions
• Be accountable for handling funds and paperwork
• Present all offers in a timely fashion

A Buyer's Agent works for YOU fully.  We are Accredited Buyer Representatives (ABR) and recognized through the National Assocation of Realtors.  As your Buyer's Agent, we act on your behalf to get you the best deal possible on the purchase of your new home, whether it be through a builder, a bank or a regular resale home.  Remember, Buying a Builder Home Without Representation Can be a Nightmare.

This is a re-post with Credit to: Joyce Thomas at US Preferred Realty www.DesertSunRealtors.com

How long do Short Sales take?... quite and interesting question, as there are several variables in play when you are working on a Grand Rapids Short Sales. Things you to understand in regards to short sales, which can complicate the negotiation process.

1. There can be more than 1 lien on the home (i.e. 80/20 mortgage, HELOC, water) If 2 mortgages they may be with the same bank or different banks, if different it can take longer to get them to agree on the settlement, if they will agree, some will never agree.
2.  Even though the mortgage is serviced by a bank that doesn’t mean the primary investor is that bank they may need to take the negations to another bank to see if they will work with it. (Typically this is how Fannie or Freddie fits in) as they are the primary investors in the majority of loans.
3. There may be defects in title, or legal disputes such as property lines etc... That may be involved that can hold the process up.
4. The Realtor or third party negotiator that is working on the file my be very experienced and have connections or not. This can vary the time of a short sale by over a month or two.
5. From the time you make an offer the short sale times can differ if the sellers have already started the process with the bank, compared to starting at Square one.

I guess what I’m trying to convey to you is that they are very complicated, and can be simplified if things are be handled by professionals. I have had probably close to 40-50 short sales completed in the last 2 years. And they have ranged from 45 days to just over 10 months. I would say a typical short sale should take around 3-4 months. You should look the professionals you are working with to give you an indication of how long you individual situation is going to take, and the variables involved.

View this MLive.com Article regarding the amount of money Kent County has lost in its property values.

http://www.mlive.com/news/grand-rapids/index.ssf/2010/04/kent_county_loses_12_billion_i.html

According to REBAC (Real Estate Buyer's Agent Council, Inc.) there are 10 features that builders will most likely include in 2010 :

1. Walk In Closet in Master Bedroom.

2. Laundry Room

3. Insulated Front Door

4. Great Room

5. Low-e Windows

6. Linen Closet

7. Programmable Thermostat

8. Energy Efficient Appliances and Lighting

9. Separate Shower & Tub in Master Bathroom

10. 9 Foot Ceilings or Higher on 1st Floor

CrimeMapping.com is a website designed to help you find out the recent crime activity that has been happening in your neighborhood or a neighborhood you're looking to move to. The website has been developed by a goup that works with law enforcement agencies thoughout the US to provide the public with accurate statisitics of crime in all neighborhoods. The goal of the website is to lower crime rates by assisiting local police departments through a better informed society. This website is a great tool to use if you're looking to move or are planning on putting your home on the market.

Potential home buyers who delay have a lot to lose.

First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit. (Like a Rebate Check)

Other factors that should spur buyers:

Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.

Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).

Source: Money Magazine, Beth Braverman (03/02/2010)

According to research done by Design Basics, LLC of Omaha, Nebraska-there are 4 different types of personalities Realtors need to cater to when working with a female home-buyer. They have come up with names to characterize these 4 different personalities:Margo-wants to "wow" others with her unique home, Elise-tends to prefer traditional, Claire-is so detailed she might bring a black light to spotlight all of a home's imperfections and Maggie-well, keeping her focus long enough on the home will be a Realtor's biggest challenge. Why so much focus on what women want? Well, according to Realtor Magazine, single women alone compromise 20% of buyers, up from 14% in 1995 and when a woman is shopping for a home with her significant other or family members it is often she who has the biggest influence over the final decision. Although these 4 personalities may not characterize every female buyer its important to decide which personality is closest to you so that you can have a better idea of what you're looking for. Choose from the more detailed list below:

Margo-"My Home is Unique" Her ideal home: Modern design and clean lines draw her eye. She likes geometric shapes and unusual features and she prefers edgy, European-influenced trends. A work area, library, or inspiration room is also desirable since she’s work-oriented.

Elise-"My Home is my Haven" Her ideal home: Function trumps aesthetics for this traditional, family-oriented buyer. She wants a home that’s easy to clean, low maintenance, and durable. She looks at a home from the family’s perspective, and wants plenty of storage, a large laundry room, and a floor plan that comfortably fits her family lifestyle. She’s more likely to go with a traditional design, such as a country kitchen.

Claire-"My Home Makes a Statement" Her ideal home: This status-driven buyer is drawn to brand names and quality products, such as nice fabrics and crown molding. Claire appreciates symmetry in design and wants polished, sophisticated spaces for formal entertaining. She’s also drawn to arched openings, columns, and a gourmet kitchen.

Maggie-"My Home is Carefree" Her ideal home: This adventurous and spontaneous buyer is the least connected to a home’s appearance. She’s drawn to comfort and function and tends to want less square footage because it means less upkeep. She also tends to prefer "green" design and low-maintenance products since she’s always on the go. Maggie is casual when it comes to a home’s design and desires flexible spaces that she can tailor to accommodate her hobbies.